Consolidated Tin Mines : Kaiser Bill Resource Update

ANNOUNCEMENT

17 October 2017

ASX/MEDIA RELEASE

ASX: CSD Share Price: $0.025 (suspended trading) ABN: 57 126 634 606

TIN M IN ES LIM ITED

ASX ANNOUNCEMENT / MEDIA RELEASE

EINASLEIGH PROJECT: Updated 2012 JORC Resources for Kaiser Bill Deposit

Consolidated Tin Mines Ltd (ACN 126 634 606) (ASX Code: CSD) (Company) is pleased to announce an updated 2012 JORC Resource for its Kaiser Bill Deposit at their Einasleigh Project.

Highlights

• Kaiser Bill JORC 2012 Code compliant Mineral Resource of 15.5Mt @ 0.93% Cu (compared to the previously reported Mineral Resource of 15Mt @ 0.84%)

• Resources now include 11 additional drill holes drilled in 2010 by Copper Strike not included in the previous Resource (March 2010)

• Resources now include 10 additional drill holes drilled in 2015 under the CSD-Wanguo agreement

• Drilling currently underway at Kaiser Bill to test for resource extension not included in this review

Background

The Kaiser Bill Prospect is situated within the Einasleigh Project on Exploration Permit for Minerals (EPM) 13072 held by Consolidated Tin Mines Limited (CSD) (Figure 1). The tenement area has historically received periodic exploration with a number of prospective targets yet to be adequately tested with bedrock drilling. Copper Strike Limited (CSE) previously undertook resource definition drilling and resource estimates of the Kaiser Bill Deposit which was included in the Einasleigh Feasibility Study completed in 2008. As part of its focused exploration strategy CSD is growing Resources at Einasleigh and progressing the discovery of new standalone projects.

Kaiser Bill

Figure 1: Kaiser Bill Resource location on EPM13072.

CONSOLIDATED TIN MINES LIMITED Page 1 of 30

Cairns Corporate Headquarters: 395 Lake Street, Cairns QLD 4870 Phone: +61 (7) 4032 3319

Email: info@csdtin.com.au Web: www.csdtin.com.au

Resource Update

The 2017 Resource declaration totals 15.5Mt @ 0.93% Cu for 144Kt of Copper. Resources are quoted above a 0.5% Cu cut-off and above the 150mRL to limit the inventory reported to align with the future prospects of economic open pit extraction.

The resource represents a JORC 2012 Code compliant update from the previously reported Resources which were reported under JORC 2004. The update includes additional drilling undertaken in 2010 and 2015 which had not previously been incorporated into a resource estimate. Resource details of the deposit and its classification are outlined in Table 1.

Table 1: Kaiser Bill Resource reported at a cut-off of 0.5% Cu for the portion of the deposit that could be mined via open-pit techniques

Note: The preceding statements of Mineral Resources confirms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant figures.

Data validation was completed by CSD geologists and involved the complete reload of original data files into an industry standard database (DataShed™) which has robust validation and constraints incorporated into it. Industry experts at Mining Plus Pty Ltd (MP) were commissioned to build the mineralisation wireframes under the guidance of CSD geologists. MP then undertook the grade estimate and Resource tabulation. The 2017 model honours the geological controls on mineralisation and forms a robust platform to grow the deposits in the future.

Geology

The base metal deposits in the Einasleigh district which includes the Kaiser Bill deposit occur within the Proterozoic Georgetown Inlier. In an Australian context, several workers have drawn parallels between the Mt Isa, Broken Hill and Georgetown Inliers, in terms of sequences and mineralisation styles envisaging the "Diamantina Orogen". In this theory, these Inliers were part of one geological terrane during sedimentation, orogenesis and at least some periods of mineralisation.

The Kaiser Bill deposit is hosted within a sequence of quartz-feldspar-biotite metasedimentary gneiss overlain by a massive felsic leucogneiss with the copper mineralisation occurring as chalcopyrite within quartz-pyrite- pyrrhotite-magnetite disseminations, stringers and breccia-fill. The contact between the two gneissic units is undulating and dips between 30° to 60° to the SSE and is interpreted to define the northern limb of a gently WSW plunging synform.

Mineralisation occurs within a broad silica-chlorite alteration zone comprising disseminated sulphides and magnetite. Numerous intrusive lithologies have been recognised within the deposit, including a foliation parallel sequence of amphibolite dykes and sills, later irregularly oriented pegmatites and intermediate to mafic dykes. The last two sets of intrusive lithologies cross-cut and stope out the copper mineralisation.

Figure 2: Kaiser Bill (KB) Resource location on local geology.

Drilling

157 drill holes for a total of 23,497.5m of drilling has been undertaken using Reverse Circulation (RC) and diamond (DD) methods. Often a combination of RC pre-collars with diamond drill tails (RCDD) has been used. The campaigns of methods of drilling considered for the resource estimation are summarised in Table 2

Table 2: Kaiser Bill drilling campaigns (TEC = Teck Cominco, CSE = Copper Strike, WG = Wanguo)

Kaiser Bill

Figure 3: Kaiser Bill drill hole collar locations.

Drilling and Sampling Techniques

The bulk of the drilling and sampling for the drill holes contained within the resource estimate has been undertaken in 8 different stages of drilling. The majority (84%) of the drilling has been undertaken by CSE. Drilling and sampling methods during this period were well documented. During the Stage 1 and 2 drilling programs, RC samples were sub-sampled using a PVC spear. For Stages 3-6 RC sampling was undertaken predominantly at the rig using a riffle splitter (single or multi-tier) providing a 2-3kg sample. RC samples were taken on 1m intervals and were recorded as having good recovery which was supported by the recorded sample weights from Stage 2 onwards.

Diamond samples for routine analysis were taken predominantly from half NQ core and submitted for assay. Due to the competent nature of the rock, core recovery is described as excellent. Where data has been recorded recoveries are >95%. No significant core loss has been recorded in the mineralised intervals.

Only intervals visually containing mineralisation were selected for analysis.

Assaying

A total of 8,128 routine samples were sent for analysis over the course of the 8 Stages of drilling. Analyses during the CSE period (94%) was completed by ALS Laboratories with routine assays completed using an ICP technique (ME-ICP41) and over-range assays completed using a mixed acid digest for ore grade samples with an ICPAES finish (OG46). Samples collected during the Wanguo (4%) period were sent to SGS Laboratories and were also completed using an ICP method (ICP41Q) with over-range assays being analysed using AAS43Q. During both programs quality control samples such as field duplicates, standards and blanks have been routinely inserted into the routine sample stream. Both ALS and SGS insert their own set of internal quality